27

In general leasing requires you to have an insurance policy that meets certain criteria (such as the policy being comprehensive). However, in the event that the vehicle is written off the insurance company will give you (their belief of) the value of the vehicle at the time, less any excess, whereas the leasing company will expect you to give them (their ...


20

You must pay every dollar of the value of the car as agreed to on the lease. Period. Some people carry insurance. This insurance will pay out based on the insurance policy. The usual default is that the insurance will buy you a non-smashed used car of comparable make, model, age and trim options. Minus any deductibles. Note that these are two ...


7

2 bits of advice. Don't ask me any questions about my car. I know it has 4 wheels, and runs on gas. More than that, I don't know (I lied, I know it has a cassette deck), and I don't care. Never take financial advice from a car salesman. Why would you? The lease is a red herring. You have identified a car that you are willing to buy for $25,000. You ...


6

Some banks allow you to choose the outcome: shorten the term or lower the payments. Also, some companies state in their contracts, that making early payments will cost you. So read the fine print about it. Basically it depends on your provider/bank/financial company.


5

There is additional insurance "GAP". It will pay the rest to buying price. My friend after totalling his few years old Audi got interesting offer - received current value of the car counted by insurer as he left them wreck to be sold in their auction - normally they will even substract remaining value of often "useless" the wreck (he bought similar newer ...


4

You should refer to your contract. But usually it won't. Every over-payment will be counted toward the next payment. So of you pay the first month 450, the second will be billed as 350 and so on. So on paper, if you pay 450 every month, at the end you will have 2400 of over-payment. Which then leaser can book (usually after your written request) that ...


4

Consider the fact that you are essentially renting the car for the lease period. Once the lease is over, you have no equity in the car, and it will likely cost you more to buy the car than it's worth (as you said, you are paying for convenience). You've spent all of that money with nothing to show for it. If I bought a car, I would not get a loan, but ...


3

It's all about circumstances, but generally leasing a car only benefits the sales person. But there can be mutual benefits. If you're the kind of person who must be seen in the latest model of car, then leasing can be great as every 2 years you just pass it in, collect the new model, pay a changeover fee and continue your payments as normal. Or, in my ...


3

I'm 18 years old, I've been growing up in a place where there is animosity towards success, trust nobody and help from nobody is the point. Toxic beliefs about money are common, so what you are experiencing is not out of the ordinary. build credit... The goal of building credit is a toxic belief about money in my opinion. Credit does not represent ...


3

Check with your local bank/credit union to see what type of loans they offer, and their rates. Don't just check the website, make an appointment to have them evaluate your actual finances and credit history. At your age, income, employment history, and credit history you may find it hard to get a loan to pay for decent car unless somebody will co-sign. Does ...


2

I'm very sorry about your situation. I'm very happy however that you appear to be a bright individual who doesn't take everything you hear at face value and you like to put research into your future steps, kudos to you! There are various resources out there that can help you in overcoming your obstacles and I'll point you to some of them, but I'd like to ...


2

This very thing happened to me, I was about 5 months into a 3 years lease when I was caught in a multi-car accident on a highway. The car was destroyed. My insurance company paid out the leaser, and I actually got a refund of overpayment from the leaser (guess the insurance company paid more than was owed by me on the car). (Ontario, Canada, if that makes ...


2

This depends on a number of factors. The idea of leasing is that there is some agreed upon amount of depreciation the asset experiences over the term of the lease, say 40% in 36 months. Rather than buy the whole asset, a car in this case, you simply borrow the car for the 36 month term and pay for the depreciation. Leases typically include some other fees ...


2

Yes, showing your offer letter can help you get a loan, from both credit unions and dealers. It's especially useful as a way to provide evidence of a raised income for someone who already has decent credit. Some lenders will require seeing a couple of pay stubs, while others can be satisfied seeing the offer letter before employment starts. Of course, given ...


2

You can think of leasing a car for five years as "buying" the first five years of its life, plus "buying" the money for that purchase (that is, since you are making monthly payments rather than an upfront one, you are paying interest, or "buying" the time value of that money), and, if there's an option to buy it at the end, a premium for that. And then there'...


2

If you are going to ignore the financial aspect of the leave vs buy situation, and just focus on convenience, then the analysis focuses on the weight you put on the haggle process. If you buy car and drive it till it falls apart, then you essentially haggle over the price/value one time when you purchase it, and then again when you sell it. In between there ...


2

Your salesman is either purposely lying, or is extremely confused. Both parts of the claim are wrong: ...that much down is not a good idea... Actually, paying the entire amount down would be better to avoid interest. The only time you really ought to purposely put less down than you can afford is if the interest rate is 0%, or if you need cash-flow for ...


1

Automobile leases are typically fixed (closed end in your terms) by design because of the nature of automobiles - they depreciate. That is, they lose value predictably over time. A lease payment is based on the dealership doing math on how much depreciation they expect to occur in a given time frame, then applying a money factor (interest rate) to that ...


1

Your question proposes that there are three ways to lease a vehicle: The customer can end the lease any time, with the idea that the term will be short The customer leases the vehicle for a specific number of months with the option to purchase at the end of the contract. There is a perpetual lease. The typical one today is the one with a specific term. ...


1

It depends on what contract you choose and how it will affect your tax deducts. Counting from "zero" (where zero is the time you lease the car) the expenses may be equal or higher to cost of buying used car (with the plus side you are the owner of the car you bought). It's usually lower to money spend on new car in the same period of time (with the downside ...


1

It is about cash flow and taxes, mostly. And leasing is not really expensive - depending what you buy. I.e. a car producer will often subsidize the paymens. I pay very little for leasing which is not deprecation on both cars, the lease itself is just a couple of percent over the year. Seriously close to nothing. In my case, my place of living makes it hard ...


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